Despite a Connecticut Humane Society official's assurances last week that an investigation would "completely vindicate" it of an array of allegations, Attorney General Richard Blumenthal said Tuesday that "strong reforms and urgent action" are needed to correct problems.

"We have found failings in a number of areas that go to the core charitable mission of this organization," Blumenthal said as he released an interim report on the investigation.

He said that there were conflicts of interest in both "appearance and reality" in the society's business dealings with board members, and that the society was spending too little money on animal care.

The report found that from 2005 to 2007, up to $258,000, or 5.2 percent of the society's budget expenses, were spent on businesses connected to board members.

The investigation will continue into what Blumenthal called "serious and credible" allegations of misuse of society funds, including whether former President and Chairman Richard Johnston used society assets to support his unsuccessful campaign for the state Senate in the early 1990s.

"In short, while the [attorney general's office] has yet to complete its investigation of all allegations concerning mismanagement, the [society] must act quickly to prevent these pervasive allegations from seriously damaging its charitable mission and functioning," the report said.

The allegations first surfaced earlier this year when a group of current and former society employees formed the Coalition for Change.

The group claimed that Johnston, who led the organization for 24 years, had unchecked power over the venerable charity, one of the most prominent in the state.

Staffing cuts and policy decisions had diminished the society's animal care, and Johnson was abusive to employees, some of whom he fired for trying to unionize, the Coalition for Change alleged.

"I feel this report shows there are, indeed, serious concerns that need to be addressed," said Maureen Lord, a coalition spokeswoman and former society employee.

Longtime board member Chris White, who owns Hartford Magazine, Life Publications and Life Newspapers, was elected chairman of the board of directors after Johnston resigned March 23.

The board voted at the time to stop allowing one person to be both president and chairman of the board, and White dismissed other allegations of mismanagement as false or exaggerated.

Alicia Wright, the society's public relations director, said in an e-mail Tuesday that White was out of state and unavailable for comment, but she released a statement.

"The board of the Connecticut Humane Society has been actively investigating the management and inner-workings of the organization for three months, and while we appreciate the attorney general's findings, many of the suggestions that he has recommended for our organization are well under way," the society's statement said. "We also look forward to the opportunity to answer the additional allegations the attorney general is now looking into."

The society told investigators that the goods and services involved in arrangements with board members were obtained at or below market value, and that individual board members recused themselves from voting when involved in the transaction.

But Blumenthal said that no outside bids were obtained and that at least two bids should be required in the future.

"[The humane society,] due to its prominent stature and good reputation in Connecticut, should hold itself to high ethical standards and create a policy and record that cannot be questioned," the report said.

Blumenthal declined to name board members who are part of the ongoing investigation, but said they "very possibly could remain on the board" if they took strong action to rectify problems.

Lord said it was unclear to her if the current board was capable of reforming the society.

"I think it's possible," she said. "Is it likely? I don't know."

The attorney general's report also said the society spends too little of its $52 million endowment on its core mission, including animal care.